How the two major parties stack up on super and retirement: pre-election score card
The Australian Institute of Superannuation Trustees – the peak body for the $1.4 trillion profit-to member super funds – has released a pre-election score card comparing key policies impacting on superannuation and retirement outcomes.
The score card highlights that Labor’s policies will have more positive impact on superannuation and the retirement outcomes for most working Australians.
AIST CEO Eva Scheerlinck said Labor’s package of reforms – which includes reforms to improve women’s balances, addressing unpaid super and reducing tax concessions for high income earners – would improve the fairness and sustainability of Australia’s retirement income system. Key Coalition superannuation policies were more limited and would largely benefit wealthier individuals with the means to make voluntary contributions, Ms Scheerlinck said.
“The nation’s ageing population, changing work conditions, the gender pay gap and falling levels of home ownership are among the key issues that need to be considered in developing appropriate superannuation and retirement policies,” Ms Scheerlinck said. “Good superannuation policy needs to be firmly focused on the long-term, with the aim to ensure that all genders and generations get a fair deal. This includes the young and old, those working full-time as well as those working part-time, and those taking time out of the workforce to care for family members, which is the situation for many women in our community.”
Ms Scheerlinck said AIST particularly welcomed Labor’s commitment to removing the $450 monthly income threshold that currently prevents many women who are working multiple jobs or part-time from receiving super contributions.
“If Labor is elected, we look forward to it going further to address the gender super gap by introducing a mechanism that targets those most in need with additional super contributions,” Ms Scheerlinck said.
Ms Scheerlinck said neither party had made a clear commitment to addressing concerns with the Age Pension taper rate, which was too steep and denied many retirees with relatively low super balances access to the part Age Pension.
“We think the current taper rate is unfair and this needs to be addressed to restore integrity to the super system,” she said.
Against the background of the recent Hayne royal Commission, Ms Scheerlinck said the next government would also need to commit to ensuring that the regulators are sufficiently resourced to do their job effectively.
Click here for AIST’s election scorecard. Click here for AIST’s policy wish list and how the major parties stack up against it.